Killajoules

TotalErg: Raffineria di Roma transformation project approved
ERG is pleased to announce that the Board of Directors of investee company TotalErg (51% ERG – 49% Total), which met today, has approved the project for the transformation of the industrial site of its wholly-owned subsidiary Raffineria di Roma into a major logistics hub for the storage and handling of petroleum products.

Eni: partial and temporary stoppage at the Gela Refinery
Today, Eni met with the National and local Trade Unions to discuss the current environment for the refining sector in Europe, Italy and particularly, the Gela area. The situation continues to be of concern, due to a significant contraction in demand for petroleum products and the surplus of refining capacity, which have led to a collapse in margins.

Lukoil Acquires 20% of ISAB
LUKOIL was notified today that the Board of Directors of the Italian ERG has resolved to sell to LUKOIL 20% in the joint venture. The joint venture was established to operate the ISAB refining complex located in Priolo (Sicily).

This is a partial exercise of ERG’s option to sell its stake according to the agreement of 2008 to create a joint venture.

Thus, LUKOIL’s stake in the joint venture can be increased from 60% to 80%.

The transaction closing is expected in the second quarter of 2012. The transaction amount will reach EUR 400 million, excluding inventory.

NOC and Eni restart Greenstream pipeline
NOC (National Oil Corporation) Libya and Eni through Greenstream BV Libyan Branch, the gas transportation Joint Venture Company (NOC 50%, Eni 50%), have initiated today testing activities for the release of natural gas into the Greenstream pipeline, which connects the treatment plant of Mellitah on the Western part of the Libyan coast to Gela in Italy.

MFA urges the Italian side to reconsider gas terminal projects in the Northern Adriatic
Director-General Andraž Zidar submitted a copy of the letter on the planned gas terminal project in the Gulf of Trieste and the Trieste–Grado–Vilesse pipeline to Tommaso Coniglio, Chargé d’Affaires, a.i. The Minister of the Environment and Spatial Planning, Roko Žarnić, addressed the letter to his Italian counterpart, Minister Prestigiacomo. The MFA expressed its surprise and deep dissatisfaction over the announcement by the Italian Minister of the Environment that a positive decision on the construction of the gas terminal and pipeline will be issued in the near future, and called on the Italian side to reconsider these projects.

The Slovenian side assesses that the Italian technical report is deficient since it does not deal fully with the issues of security and the prevention of major incidents, cross-border impacts on Slovenia and does not abide by the precautionary principle.

The Ministry of Foreign Affairs emphasises that all three projects (both gas terminals and a pipeline) impose a great environmental burden on the Northern Adriatic and calls on the Italian side to reconsider the projects with a view to identifying a more suitable construction site in the Adriatic area.

The Slovenian Ministry of Foreign Affairs expresses its deep dissatisfaction over the announcement of Italian Minister of the Environment Prestigiacomo for several reasons. In its expert study forwarded to the Italian side, the Republic of Slovenia voiced numerous grave doubts about the projects: the discharge of mercury piled on the Northern Adriatic seabed would cause marine pollution; the gas terminal construction would threaten maritime fishing activities and pose danger to the health of the local population; the gas terminal construction would disrupt the transport system in the Northern Adriatic with possible negative impacts on tourism in the region.

Ministry of Economic Development Gives LNG terminal go-ahead in Falconara Marittima
Was held July 12 at the Ministry of Economic Development conference services for the final approval of a regasification terminal bees nòva energy company in the town of Falconara Marittima.

Italy – Total strengthens its presence in Exploration-Production
Today, Total announced the acquisition of Esso Italiana’s interests respectively in the Gorgoglione concession (25% interest), which contains the Tempa Rossa field, and in two exploration licenses located in the same area (51.7% for each one). The acquisition increases Total’s equity stake in the operated Tempa Rossa field to 75%. The transfer of interests is subject to the approval of Italian authorities.

Trans Adriatic Pipeline begins ESIA submission process in Greece
The Trans Adriatic Pipeline (TAP) announced today that it has commenced its Environmental and Social Impact Assessment (ESIA) process in Greece. The submission of its Scoping Report to the Greek authorities comes after similar moves in Albania and Italy earlier this year and will follow the European Bank for Reconstruction and Development (EBRD) guidelines, recognised as the benchmark for international best practice.

Eni launches the EST project at the Sannazzaro refinery
Eni today started works for the first industrial application of the Eni Slurry Technology (EST) at its refining plant of Sannazzaro de' Burgondi, near Pavia. EST is Eni's proprietary technology for the conversion of heavy oil residues in fine products, gasoline and gasoil.
The EST technology, funded by Eni with over 1.1 billion Euro, represents the first Italian scientific and technological discover in the oil refining sector and the biggest industrial project currently underway in the country.
The project, which will be completed by the end of 2012 with the start of the 23,000 boe/day-capacity plant, commenced during 90s by Eni at its San Donato Milanese labs. Works continued at the Taranto refinery, where a 1,200 boe/day demo plant started operations in 2005, representing the reference point of the Sannazzaro plant. The design of the new plant, which will be carried out in accordance with the highest technological and environmental standards, began in 2008 and involved Saipem for the engineering activities.

Accident at Saras Refinery
Saras is deeply saddened to inform you that yesterday evening a tragic event took place at the DEA3 unit of the Sarroch refinery. This unit was idle for scheduledmaintenance.